Plain English summary not yet available
The full original text is available below. Check back soon as we process this bill.
I
118TH CONGRESS
1ST SESSION H. R. 2902
To amend the Internal Revenue Code of 1986 to repeal the alcohol fuels
credit, the biodiesels fuel credit, the sustainable aviation fuel credit,
the clean fuel production credit, the alcohol fuel, biodiesel, and alternative
fuel mixtures credit, and other related provisions.
IN THE HOUSE OF REPRESENTATIVES
APRIL 26, 2023
Mr. PERRY (for himself, Mr. GOSAR, Mr. BURLISON, and Mr. CRANE) intro-
duced the following bill; which was referred to the Committee on Ways
and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal
the alcohol fuels credit, the biodiesels fuel credit, the
sustainable aviation fuel credit, the clean fuel production
credit, the alcohol fuel, biodiesel, and alternative fuel
mixtures credit, and other related provisions.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Restoring Fuel Market
4
Freedom Act of 2023’’.
5
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
2
•HR 2902 IH
SEC. 2. AMENDMENT OF 1986 CODE.
1
Except as otherwise expressly provided, whenever in
2
this Act an amendment or repeal is expressed in terms
3
of an amendment to, or repeal of, a section or other provi-
4
sion, the reference shall be considered to be made to a
5
section or other provision of the Internal Revenue Code
6
of 1986.
7
SEC. 3. REPEAL OF ALCOHOL FUELS CREDIT.
8
(a) IN GENERAL.—Section 40 is repealed.
9
(b) CONFORMING AMENDMENTS.—
10
(1) Section 25C(d)(3)(B) is amended by insert-
11
ing ‘‘, as in effect on the day before the date of the
12
enactment of the Restoring Fuel Market Freedom
13
Act of 2023’’ after ‘‘section 40’’.
14
(2) Section 38(b) is amended by striking para-
15
graph (3).
16
(3) Section 168(l)(2)(A) is amended by insert-
17
ing ‘‘as in effect on the day before the date of the
18
enactment of the Restoring Fuel Market Freedom
19
Act of 2023’’ after ‘‘section 40(b)(6)(E)’’.
20
(4) Section 196(c) is amended by striking para-
21
graph (3).
22
(5) Section 4101(a)(1) is amended by striking
23
‘‘, and every person producing second generation
24
biofuel (as defined in section 40(b)(6)(E))’’.
25
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
3
•HR 2902 IH
(6) Section 4014(a)(1) is amended by striking
1
‘‘, 40,’’.
2
(c) CLERICAL AMENDMENT.—The table of sections
3
for subpart D of part IV of subchapter A of chapter 1
4
of subtitle A is amended by striking the item relating to
5
section 40.
6
(d) EFFECTIVE DATE.—The amendments made by
7
this section shall apply to fuels produced after the date
8
of the enactment of this section.
9
SEC. 4. REPEAL OF BIODIESELS FUEL CREDIT.
10
(a) IN GENERAL.—Section 40A is repealed.
11
(b) CONFORMING AMENDMENTS.—
12
(1) Section 25C(d)(3)(A) is further amended by
13
inserting ‘‘, as in effect on the day before the date
14
of the enactment of the Restoring Fuel Market
15
Freedom Act of 2023’’ after ‘‘section 40A’’.
16
(2) Section 30C(C)(1)(B)(ii)(I) is amended by
17
inserting ‘‘(as in effect on the day before the date
18
of the enactment of the Restoring Fuel Market
19
Freedom Act of 2023)’’ after ‘‘section 40A(d)(1)’’.
20
(3) Section 38(b) is further amended by strik-
21
ing paragraph (17).
22
(4) Section 196(c) is further amended by strik-
23
ing paragraph (11).
24
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
4
•HR 2902 IH
(5) Section 4101(a)(1) is further amended by
1
striking ‘‘, every person producing or importing bio-
2
diesel (as defined in section 40A(d)(1))’’.
3
(6) Section 4104(a)(1) is further amended—
4
(A) by striking ‘‘sections’’ and inserting
5
‘‘section’’, and
6
(B) by striking ‘‘and 40A,’’.
7
(7) Section 7704(d)(1)(E) is amended by in-
8
serting ‘‘, as in effect on the day before the date of
9
the enactment of the Restoring Fuel Market Free-
10
dom Act of 2023’’ after ‘‘40A(d)(1)’’.
11
(c) CLERICAL AMENDMENT.—The table of sections
12
for subpart D of part IV of subchapter A of chapter 1
13
of subtitle A is amended by striking the item relating to
14
section 40A.
15
(d) EFFECTIVE DATE.—The amendments made by
16
this section shall apply to fuels sold or used after the date
17
of the enactment of this section.
18
SEC. 5. REPEAL OF SUSTAINABLE AVIATION FUEL CREDIT.
19
(a) IN GENERAL.—Section 40B is repealed.
20
(b) CONFORMING AMENDMENTS.—
21
(1) Section 38(b) is further amended by strik-
22
ing paragraph (35).
23
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
5
•HR 2902 IH
(2) Section 4101(a)(1) is further amended by
1
striking ‘‘, every person producing or importing sus-
2
tainable aviation fuel (as defined in section 40B)’’.
3
(c) CLERICAL AMENDMENT.—The table of sections
4
for subpart D of part IV of subchapter A of chapter 1
5
of subtitle A is amended by striking the item relating to
6
section 40.
7
(d) EFFECTIVE DATE.—The amendments made by
8
this section shall apply to fuel sold or used after the date
9
of the enactment of this section.
10
SEC. 6. REPEAL OF SPECIFIC INCLUSION OF ALCOHOL AND
11
BIODIESEL FUEL CREDITS IN GROSS INCOME.
12
(a) IN GENERAL.—Section 87 is repealed.
13
(b) CONFORMING AMENDMENTS.—Section 56(a) is
14
amended by striking paragraph (7).
15
(c) CLERICAL AMENDMENT.—The table of sections
16
for part II of subchapter B of chapter 1 of subtitle A is
17
amended by striking the item relating to section 87.
18
(d) EFFECTIVE DATE.—The amendments made by
19
this section shall apply to fuel sold or used after the date
20
of the enactment of this section.
21
SEC. 7. REPEAL OF CLEAN FUEL PRODUCTION CREDIT.
22
(a) IN GENERAL.—Section 45Z is repealed.
23
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
6
•HR 2902 IH
(b) CONFORMING AMENDMENTS.—Section 13704 of
1
Public Law 117–169 is amended by striking subsection
2
(b).
3
(c) CLERICAL AMENDMENT.—The table of sections
4
for subpart D of part IV of subchapter A of chapter 1
5
is amended by striking the item relating to section 45Z.
6
(d) EFFECTIVE DATE.—The amendments made by
7
this section shall apply to transportation fuels produced
8
after the date of the enactment of this section.
9
SEC. 8. REPEAL OF ALCOHOL FUEL, BIODIESEL, AND AL-
10
TERNATIVE FUEL MIXTURES CREDIT.
11
(a) IN GENERAL.—Section 6426 is repealed.
12
(b) CONFORMING AMENDMENTS.—
13
(1) Section 4101(a)(1) is further amended by
14
striking
‘‘or
alcohol
(as
defined
in
section
15
6426(b)(4)(A))’’.
16
(2) Section 4104(a)(2) is further amended by
17
striking ‘‘, 6426,’’.
18
(3) Section 7704(d)(1)(E), as amended by sec-
19
tion 4(b)(7), is further amended by inserting ‘‘such
20
sections were’’ after ‘‘, as’’.
21
(4) Section 9503(b)(1) is amended by striking
22
‘‘credits under section 6426’’.
23
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
7
•HR 2902 IH
(c) CLERICAL AMENDMENT.—The table of sections
1
for subchapter B of chapter 65 of subtitle F is amended
2
by striking the item relating to section 6426.
3
(d) EFFECTIVE DATE.—The amendments made by
4
this section shall apply to fuel used or sold after the date
5
of the enactment of this section.
6
SEC. 9. REPEAL OF PAYMENTS FOR CERTAIN FUELS NOT
7
USED FOR TAXABLE PURPOSES.
8
(a) IN GENERAL.—Section 6427 is amended by strik-
9
ing subsection (e).
10
(b) CONFORMING AMENDMENTS.—
11
(1) Section 34 is amended—
12
(A) in subsection (a), by inserting ‘‘and’’
13
after the comma at the end of paragraph (1),
14
by striking ‘‘, and’’, and inserting a period at
15
the end of paragraph (2), and by striking para-
16
graph (3), and
17
(B) in subsection (b)—
18
(i) by striking ‘‘or 6427,’’, and
19
(ii) by striking ‘‘or 6427(k)’’.
20
(2) Section 4007(b) of the CARES Act (15
21
U.S.C. 9046(b)) is amended to read as follows:
22
‘‘(b) USE
OF KEROSENE
IN COMMERCIAL AVIA-
23
TION.—In the case of kerosene used in commercial avia-
24
tion (as defined in section 4083 of the Internal Revenue
25
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
8
•HR 2902 IH
Code of 1986) during the excise tax holiday period no tax
1
shall be imposed on such kerosene under—
2
‘‘(1) section 4041(c) of the Internal Revenue
3
Code of 1986, or
4
‘‘(2) section 4081 of such Code (other than at
5
the rate provided in subsection (a)(2)(B) thereof).’’.
6
(3) Section 4041 is further amended by adding
7
at the end the following new subsection:
8
‘‘(n) REFERENCES TO SECTION 6427.—Each ref-
9
erence to section 6427 in this section shall be applied as
10
such section was in effect on the date of the enactment
11
of the Restoring Fuel Market Freedom Act of 2023.’’.
12
(4) Section 4081(c) is amended by striking ‘‘(or
13
with respect to which a credit or payment was al-
14
lowed or made by reason of section 6427)’’.
15
(5) Section 4082(d)(2) is amended to read as
16
follows:
17
‘‘(2) WHOLESALE DISTRIBUTORS.—To the ex-
18
tent provided in regulations, subsection (a)(2) shall
19
not apply to kerosene received by a wholesale dis-
20
tributor of kerosene if such distributor is registered
21
under section 4101 with respect to the tax imposed
22
by section 4081 on kerosene.’’.
23
(6) Section 4084 is amended by striking para-
24
graph (3).
25
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
9
•HR 2902 IH
(7) Section 4041(a)(2) is further amended by
1
striking ‘‘or 6427(e)’’.
2
(8) Section 6206 is amended—
3
(A) by striking ‘‘section 6420, 6421, or
4
6427’’ and inserting ‘‘section 6420 or 6421’’,
5
(B) by striking ‘‘or 4081 (with respect to
6
payments under section 6427)’’,
7
(C) by striking ‘‘section 6416(a)(4), 6420,
8
6421,
or
6427,’’
and
inserting
‘‘section
9
6416(a)(4), 6420, or 6421,’’.
10
(9) Section 6416(a)(4)(C) is amended by insert-
11
ing ‘‘(as such section was in effect on the date of the
12
enactment of the Restoring Fuel Market Freedom
13
Act of 2023)’’ after ‘‘section 6427(i)(4)’’.
14
(10) Section 6421(d) is amended by striking
15
paragraph (2).
16
(11) Section 6504(8) is amended by striking
17
‘‘section 6420, 6421, or 6427’’ and inserting ‘‘sec-
18
tion 6420 or 6421’’.
19
(12) Section 6675(b)(1) is amended by striking
20
‘‘section 6416(a)(4), 6420, 6421, or 6427,’’ and in-
21
serting ‘‘section 6416(a)(4), 6420, or 6421,’’.
22
(13) Section 7210 is amended by striking
23
‘‘6427(j)(2),’’.
24
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
10
•HR 2902 IH
(14) Section 7603 is amended by striking
1
‘‘6427(j)(2),’’.
2
(15) Section 7604 is amended by striking
3
‘‘6427(j)(2),’’ each place such term appears.
4
(16) Section 7605 is amended—
5
(A) by striking ‘‘, 6427(j)(2)’’, and
6
(B)
by
striking
‘‘section
6420(e)(2),
7
6421(g)(2), or 6427(j)(2)’’ and inserting ‘‘sec-
8
tion 6420(e)(2) or 6421(g)(2)’’.
9
(17) Section 7609 is amended by striking
10
‘‘6427(j)(2),’’.
11
(18) Section 7610 is amended by striking
12
‘‘6427(j)(2),’’.
13
(19) Section 9502(d) is amended—
14
(A) in paragraph (2), by striking ‘‘, 6421
15
(relating to amounts paid in respect of gasoline
16
used for certain nonhighway purposes), or 6427
17
(relating to fuels not used for taxable purposes)
18
(other than subsection (l)(4) thereof)’’ and in-
19
serting ‘‘or 6421 (relating to amounts paid in
20
respect of gasoline used for certain nonhighway
21
purposes)’’, and
22
(B) in paragraph (3), by striking ‘‘(other
23
than payments made by reason of paragraph
24
(4) of section 6427(l))’’.
25
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS
11
•HR 2902 IH
(20) Section 9503(c) is amended by striking
1
paragraph (5).
2
(c) EFFECTIVE DATE.—The amendments made by
3
this section shall apply to fuel sold or used after the date
4
of the enactment of this section.
5
Æ
VerDate Sep 11 2014
03:27 May 05, 2023
Jkt 039200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H2902.IH
H2902
kjohnson on DSK79L0C42PROD with BILLS